Market
What will be the outcome of Germany's defense spending policy changes by end of 2026?
2
Resolution / Starting Odds
Increase to 3.5% of GDP • 25%
Maintain at current level • 25%
Decrease from current level • 25%
Other • 25%
Official German government budget reports or announcements
Story
German Vice Chancellor Habeck Calls for Defense Spending to Nearly Double to 3.5% of GDP to Deter Russian Aggression
Jan 5, 2025, 08:08 AM
German Vice Chancellor Robert Habeck has called for a significant increase in defense spending, advocating for a rise to 3.5% of Germany's GDP. This proposal, which would nearly double current defense expenditures, is driven by the perceived threat from Russia. Habeck emphasized the need for Germany to enhance its military capabilities to deter potential aggression from Russian President Vladimir Putin, stating that increased spending is necessary to 'secure peace and prevent further war.' His comments align with recent warnings from German Defense Minister Boris Pistorius about hybrid attacks from Russia targeting Germany. The current NATO target for defense spending is 2% of GDP, which Germany meets through a special fund of 100 billion euros, set to be exhausted by the end of 2027.
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